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Wednesday, November 30, 2016

If you are a retiree, you likely have heard many claims made
about probate problems. The word itself may even fill you with dread. If
you are planning your estate, there are some things you should consider
concerning probate. In this, as in all things, it is important to take a
balanced approach. Let's review some of the issues pertaining to
probate. Then you can decide if you need to approach your estate
planning differently.

What is the purpose of probate?

You
have heard this word many times, but may never have considered what it
means. In legal terms, probate is the period of time during which a will
is proven authentic or valid. The purpose of probate is to distribute
an estate according to the decedent's wishes described in his or her
will. Typically, the first step of probate is to use the person's
probate assets and property to pay all debts. After that, any remaining
assets and property are distributed to persons named in the will. There
may be costs associated with the probate process.

Probate ensures
that your wishes for the distribution of your estate are carried out
upon your death. Probate is a public process. If your estate is of any
size, your heirs could suddenly have new friends trying to advise them
on how to manage their newly inherited assets.

People often assume all assets are subject to probate, which raises the following question.

Are all assets subject to probate?

No.
Some assets are excluded from probate. An example would be assets that
are held in joint ownership with rights of survivorship, such as your
personal home. Other assets not subject to probate are those governed by
a beneficiary designation. This would include assets such as your
401(k), IRAs, life insurance policies, and annuities. Additionally,
assets held in a trust are not subject to probate. If the majority of
your estate assets are held in accounts of this type, you may not have
that much to be concerned about.

What about my brokerage and bank accounts?

These
types of accounts can be set up to transfer on death (TOD) to a
beneficiary. This designation allows you to pass securities and banking
accounts directly to another person (your TOD beneficiary) upon your
death without having to go through probate. By setting your accounts up
this way, the executor or administrator of your estate will not have to
take any action to ensure that your accounts transfer to the person you
have designated. The TOD beneficiaries will have to take steps to
retitle the accounts in their name, but this is not a very cumbersome
process.

As you can see, probate may not be as bad as you have
heard. There are many things to consider during the estate planning
process.

Tuesday, November 29, 2016

A living will, also called will to live, is one type of advanced health care system, or advanced health care principle. It often goes along with a specific type of power of attorney. These are legal tools that are usually witnessed or notarized.

A living will usually covers specific directions as to the course of treatment that is to be taken by caregivers, or, in particular, in some cases denying treatment and sometimes also food and water, should the patient be unable to give conscious consent ("individual health care instruction") due to illness.

A power of attorney for health care, appoints an individual (a proxy) to give health care decisions should the patient be unable to do so.

Refusal of treatment forms, the name suggests, the term "will to live", as opposed to the other terms, tends to point out the wish to live as long as possible rather than refusing treatment in the case of serious conditions.

In the Netherlands, patients and likely patients can identify the circumstances under which they would want euthanasia for themselves. They do this by providing a written order. This helps to ascertain the preexisting expressed wish of the patient even if the patient is no longer able to exchange a few words. However, it is only one of the factors that is taken into account.

In Switzerland, there are several associations which take care of registering patient declarations, forms which are signed by the patients declaring that in case of unending loss of judgment (e.g., inability to communicate or severe brain damage) all means of prolonged life shall be stopped. Family members and groups, also keep alternatives which entitle its holder to enforce such patient decrees. Establishing such decrees is pretty straightforward.

In the United States, most states recognize living wills or the label of a health care surrogate. However, a "report card" issued by the Robert Wood Johnson Foundation in 2002 concluded that only seven states deserved an "A" for meeting the standards of the model Uniform Rights of the Terminally Ill Act. Surveys show that one-third of Americans say they've had to make decisions about end-of-life care for a loved one.

Monday, November 28, 2016

When you start a business you will have to sift through the variety of options that are available to you in terms of running a full scale operation. Even if you're the only person working within the framework of a company, you will still need to file paperwork with your state and city governments, and you will need to have a good plan of action. Sure, you could just go into business and wait for the penalties to pile up and then form a legitimate business, or you could look into the proper way to go about starting an LLC. The latter is far better in many people's views, and will definitely save you headaches later on. Consider the following positive points of starting an LLC.

Multiple Owners or One Owner - Whether you have a great deal of investors that want to be part owners or you are alone in the process you will find that an LLC allows you to run your company with a great deal of freedom. Not only that, you will be able to include others in a management or even ownership capacity later on as long as you have an operation document that will showcase your ideas moving forward.

Liability - The best part of starting an LLC is that you will not be liable for a great variety of issues that will come up. For instance, let's assume that you have a client that is hell bent on suing you, and so they sue the business that you own and you have to go to court. If you file your paperwork properly, and you lose the case, you will only be liable for the money that is held within your business, and nothing else! That means if you own a home, a boat, a car or just about anything that is not part of the business proper, you could stand to lose nothing on a personal level. This is a great thing because you can protect your assets and not worry about what some might do to try and get your money.

Taxes - Dealing with taxes can be quite easy because they flow into personal income taxes in many ways. You will find that you will have to deal with your taxes in a manner that is a bit more simple than starting a larger company or a different option in terms of business. While it's not a matter of not paying your fair share, it's really a matter of ease when tax time comes around.

The above 3 positive points when starting an LLC are just 3 items that many find to be great. There are a number of other integral points to consider and each one seems to make the formation of this type of company a bit better than others. Only you can decide what path your business takes, but when it comes to starting something away from the traditional route of 40 hour work weeks, this is definitely one of the more attractive options. You'll find that it's easier than others, and it can bring amazing profits in time.
Article Source: http://EzineArticles.com/expert/Pete_Morgan/604971

Saturday, November 26, 2016

Most people tend to procrastinate about making their last will
and testament, primarily because it is a harsh reminder of our mortality
and as such, we prefer not to have anything to do with it until the
time comes when it is too late to do something about it. In most
funerals you attend, you often hear people ask if the deceased left any
will and the most common answer being "no" or "none."

While making
a will is certainly no one's favorite thing to do, what many people
don't realize is that it can alleviate your fears of death because once
you decide to make it, you will be assured that the loved ones you leave
behind will be taken care of properly and that your estate won't be
spent on legal expenses from contests initiated by your heirs.

However,
that's not to say you can't die without ever making a will. In fact,
there are two ways by which you can die without a will, the first being
because you never wrote one and the second being, the will you wrote was
declared invalid by probate court. In both cases, this is referred to
as dying intestate or dying without a valid will.

When you die
intestate, that means the control of your property and the distribution
of your assets will be done under the laws of intestacy. If for example
you co-owned a property with two other people, the laws of intestacy
dictate that the ownership will not transfer to the other co-owners but
your heirs, which is one situation that the remaining co-owners may
contest.

There are four types of assets where these laws don't apply and they are as follows:

Life insurance and retirement plan proceeds

Properties that are jointly owned with a right of survivorship

Properties held in a living trust

Properties under the community property system

The entire purpose of making a will is to make sure your
property and assets are distributed to people and organizations as you
intended. To make sure this happens you can elect an executor of your
will to make sure every condition in your will is fulfilled. Choosing an
executor means you should choose someone you trust like a relative or a
close friend. If you don't have neither to choose from, then it should
be someone who is dependable, trustworthy, well-organized, good with
paperwork and diligent about meeting deadlines.

And lastly, making
a will doesn't have to follow a strict guideline because what will
matter is not how the will was written but the conditions written
within. There are many ways these days to write your own will, such as
software that you can use just by asking you a few questions where your
answers will be inserted into a ready-made will. Having a will ready
will also save you from having to hire a lawyer to help you write one -
not only is it time-consuming to find a good lawyer, it is also quite
expensive to have one draft your will for you.

Friday, November 25, 2016

Establishing a living trust is critical to the ability to protect
your assets and beneficiaries when you die. But many people don't know
that there are two types of trusts - irrevocable trusts and revocable
trusts. With irrevocable trusts, the grantor's assets are moved out of
the estate. In a revocable trust, assets stay in the grantor's estate.
There are advantages to each type depending on the grantor's specific
circumstances. Here is a rundown on the differences between the two
types of trusts.

Irrevocable Trust

Most people are unaware of the advantages that this type of trust provides:

Asset Protection - Moves assets out of the grantor's hands, keeping it
safe from lawsuits or creditors. A trustee has the power to make
decisions with or without the input of the grantor.

No Estate Taxes - Many people are attracted to these trusts because they are protected from federal estate taxes.

No Capital Gains Taxes - A skilled lawyer will be able to move assets
into irrevocable trusts so as to avoid capital gains taxes. This cannot
occur with revocable trust.

Before placing assets into this type of trust, make sure
that the grantor will never need them. While it is possible to retrieve
assets, it is very difficult and time consuming.

Revocable Trust

Most
people have an idea of what this type of trust is. Grantors without
complicated tax issues that want to still maintain control over their
assets, often choose to have a this trust.

Mental Disability - Individuals who fear that they will one day be
incapacitated, may want to designate a trustee to handle their assets
which can include extensive instructions that the trustee must carry
out. This is called a Disability Trustee.

To Protect Beneficiaries and Property - Keeps your property and assets
out of probate. This ensures that your documents stay private and out of
the public record. If privacy is important to you, consider a Revocable
Living Trust as opposed to a Last Will and Testament which becomes a
matter of public record that can be seen by anyone.

To Avoid Probate - Assets at the time of a person's death will pass
directly to the beneficiaries named in the trust agreement and avoid
probate.

For Flexibility - These types of trusts can be changed. If you have a
second thought about a particular item or beneficiary, you can modify
the document through a trust amendment. If you don't like the trust as a
whole, then you can revoke the entire document.

Word of Caution: These trusts offer not creditor
protection. If the asset holder is sued, the items in the trust are fair
game. Upon your death, those assets will be subject to federal and
state estate taxes.

Wednesday, November 23, 2016

When you hear "uncontested divorce", also known as no fault
divorce in California, you probably think of a couple who amicably and
in a friendly manner decide to call it quits. While this is surely the
case in some situations, choosing to go the uncontested divorce route
may be a financial decision rather than an emotional one. Just like any
divorce, there is the chance that an uncontested will see unpleasantness
and bitterness to some degree.

So why would you choose this path
if you are unhappy with your former partner? Well, for one an
uncontested divorce is much cheaper than a contested divorce in most
cases. The couple could even file for divorce without the assistance of
lawyers, although at the very least speaking with an attorney is often
helpful and important in protecting one's rights.

What's more, it
allows the couple to end their marriage quickly and with as little
animosity as possible, even if the former couple isn't walking away from
the marriage with the best of feelings towards one another. You
probably will not agree on every single aspect of the divorce, but after
a little negotiating, compromising and talking through the issues,
couples are often able to reach an agreement without fighting each other
in court.

Getting back to the money-saving benefit of an
uncontested divorce, the extra cash that may otherwise go to a divorce
attorney can be used to rebuild your life. You won't have a partner with
whom you can split your expenses, including rent, car payments,
utilities, etc., and if you have kids you'll be able to pamper them a
little bit as they deal with the divorce.

There are some cases in
which a no fault divorce may not be right. If abuse exists in the
relationship, negotiating may be difficult for the victim of abuse, as
intimidation and possibly fear will put create an uneven playing field.
If either you or your spouse decides that you want to walk away with
most of your assets, or if you are not on speaking terms with your
spouse, an uncontested divorce may not be the best of choices.

In the end, though, many choose an uncontested divorce because of the money, headaches and hassle that it saves them.

Monday, November 21, 2016

Probate is the system in which the court's system's method of
processing the estates of a dead person. It is a legal document that
enables the administration of the estate of the deceased. It allows for
the resolving of claims and distribution of the deceased's will. Any
grievances surrounding a deceased person's estate are filed in the
probate court also known as the surrogate court. Once probated, the will
becomes a legal instrument that can be enforced by the executor.

Administration process

Administration
process of an estate on the other hand is the process by which the
deceased person's assets are collected, maintained and distributed. An
estate administrator sees to the proper administration of the will.

The Probate process

The
probate process begins after the death of a person. An interested
person files an application to administer the estate; a fiduciary is
then appointed who is to administer the estate and at times may be
required to pay a bond to safeguard and to insure the estate. Creditors
are notified and legal notices published. There may be filed a petition
to appoint a personal representative may need to be filed and letters of
administration obtained. All these processes must be done in accordance
with the limitation clause.

Property that avoids probate

Property
that passes to another person contractually upon the death of a person
does not enter probate for example a jointly owned property with rights
of survivorship. Property held in a revocable or irrevocable trust that
was created when the grantor's was still alive does not also enter
probate. In most of these cases the property is distributed privately
and without many issues thus no court action is required.

What happens in the probate and administrative process?

After
a probate case has been filed in court, an inventory is entered and the
deceased's property collected. The debts and taxes are paid first then
the remaining property distributed to the beneficiaries. The probate and
administrative process may be challenged at any time as a whole or part
of it. The issues that arise during such hearings include will contests
and paternity issues and these have to be solved before the matter is
decided.

The need for the appointment of an administrator arises
where the deceased left no will, some assets are not disposed of by the
will, in cases where there is a will however, the case goes to probate
directly. The estate administrators act like will executors but where
the will does not state how to distribute of property, they follow the
laid down laws.

Sunday, November 20, 2016

With modern medical technology advancements, it is becoming more
and more important to consider writing an advanced healthcare directive.
There are several kinds of advanced healthcare directives. A living
will is one form of an advanced healthcare directive. It is a document
that specifies what you want done medically if you are no longer capable
of making decisions for yourself. A medical power of attorney or
healthcare proxy is another form that appoints a specific person to make
decisions for you if you are incapacitated. It is advised that a person
have both documents prepared and in place long before they will ever be
needed.

With today's advancement in medical care many people are
left confined to nursing homes. Many elderly are in a vegetative state,
fed through feeding tubes while their bodies slowly die. The emotional
and financial burden the families of these patients experience is
overwhelming. Lives are prolonged but there is no real quality of life.
An advanced directive can prevent this from happening to those you love.

The
living will was first proposed by Luis Kutner in 1969. His purpose was
to make sure the living were able to make their wishes known when they
were no longer able to speak for themselves. The living will gives
direction to medical professionals about what procedures a person wants
and doesn't want. It can forbid the use of medical equipment used to
sustain life or direct it be discontinued when it only prolongs death.
It can be general or specific depending on the wishes of the person
writing it.

Advanced directives should be regularly updated to
make sure they cover current medical technology. As advancements are
made, changes need to be made to reflect that advancement. A living will
that is current is more likely to be acknowledged and followed.

It
is advised that a living will be combined with a healthcare proxy to
assure your wishes are followed. No document can fully cover all the
circumstances that might occur. Having a person on the scene making
immediate decisions is important. By designating a person in advance to
make decisions, you can be reassured that no decisions are made that
might conflict with your desires.

The comfort and peace of mind an
advanced healthcare directive gives is invaluable. Knowing you will not
be a burden to your family allows you to calmly live knowing any
necessary medical decisions will be made by someone you trust.

Saturday, November 19, 2016

Setting up an LLC and other states has become a popular option
for many small business owners because of the many benefits it offers. A
limited liability company puts together the advantages of a sole
proprietorship, a partnership, and a corporation all in one business
entity. This means compete control, tax benefits, and limited liability.
The interest in LLCs continues to grow as more and more business owners
are able to realize its advantages over other business types.

Before
starting an LLC, there are some considerations that should be kept in
mind. Taking note of these considerations will ensure that the
processing of its registration with the appropriate government agencies
will go faster and smoother. When the paperwork is completed properly,
there will be no questions as to the LLC's legality.

First, the
members filing for LLC should decide on the name of the business. This
should meet the standards in LLC names set by the state government. To
know the availability and aptness of the name, the business name
database can be utilized for verification. Also, the name for an LLC can
be reserved for four months by filing an application as well.

The
next step is submitting the LLC's Articles of Organization. These
articles should include all the necessary information about the LLC such
as the name and address of LLC, its registered agent, and its duration.
Also, how the LLC will be managed and who will manage the LLC should be
stated in the Articles of Organization. Under the law, these are all
filed with the office of the Secretary of State through mail.

The
Operating Agreement should be processed after the filing of the Articles
of Organization. Though this is not required by the state's government,
it is still highly advisable. This is essential to define each member's
responsibilities and liabilities. With Operating Agreement, the members
can be protected from being personally liable if ever the business
becomes bankrupt. Aside from the statement of responsibilities and
liabilities, other information can be included as well. This includes
the business nature, concept, and mission statement.

Lastly,
business permits and licenses should be acquired. These vary depending
on state laws. The business licenses that need to be obtained depend on
the nature of the business and its location. Aside from that, the LLC
businesses are all required to submit annual reports. This is also
submitted to the Secretary of State on the designated date and can be
done through mail or online filing. Knowing about all these requirements
will help business owners keep track of their filing schedules to
ensure that they are always compliant with all the government's
documentation and reportorial requirements.

Wednesday, November 16, 2016

A Medical Power of Attorney gives specific instructions, prepared
in advance, that are intended to direct medical care for an individual
if he or she becomes unable to do so in the future. Plainly speaking, a
Medical Power of Attorney is made in anticipation of a medical
emergency. If you are in an accident or suffer a disease or disorder
that may leave you incapable of making a sound medical decision, a
Medical Power of Attorney permits you to choose in advance who will
represent and enforce your interests. The person authorizing the other
to act on his behalf is the "principal" and the one authorized to act is
the "agent".

A Medical Power of Attorney should be given to
someone whom you trust unreservedly; this is an individual who will be
making decisions for you when you are incapacitated, even if you are not
on life support or terminally ill. However, an agent does not have the
authority to act until the principal's attending physician certifies in
writing that the principal is incompetent.

A Medical Power of
Attorney is not legally effective unless the principal signs a
disclosure statement that he or she has read and understood the contents
before signing the document. If the principal is physically unable to
sign, another person may sign the document in his or her presence and at
his or her directive. Two qualified witnesses, who are competent
adults, must witness the procedure. At least one of them must not be
related to the principal, the principal's attending physician or the
attending physician's employee, entitled to a part of the principal's
estate, an individual who has a claim against the principal's estate, or
an officer, director, partner or business office employee of the
healthcare facility.

An individual may revoke the Medical Power of
Attorney by notifying either the agent or the principal's health care
provider of his or her intent to revoke the document. This revocation
will take place regardless of the principal's capability to make sound
medical judgments. Further, if the principal executes a later Medical
Power of Attorney, then all prior ones are revoked. If the principal
designates his or her spouse to be the agent, a divorce revokes the
Medical Power of Attorney.
An agent, acting in good faith, will
not incur criminal or civil liability for a medical decision made under a
Medical Power of Attorney.

Saturday, November 12, 2016

A Limited Liability Company (LLC) is a very flexible form of
business structure that combines elements of the typical corporation and
partnership structures. By forming an LLC, you create a legal entity
that provides limited liability to its owners. Often, these are
incorrectly called a Limited Liability Corporation instead of Limited
Liability Company. It is truly a hybrid business entity that can contain
elements and/or characteristics of corporations, partnerships and even
sole proprietorships, depending on how many owners are involved in the
Limited Liability Company. An LLC, even though it is a business entity,
is actually a type of unincorporated business and is not a corporation.
The main characteristic that an LLC shares with a corporation is the
limited liability protection that they both offer. The main
characteristic that an LLC shares with a partnership is the pass-through
income taxation that they both offer. It is, however, much more
flexible than a corporation and is very well suited to single owner
businesses.

You should understand that neither limited liability
companies nor corporations always protect owners from liability. The
legal system in the United States does allow a court system to pierce
the corporate veil of an LLC if some type of fraud or misrepresentation
is involved or in a situation where the owner uses the company as an
'alter ego'.

Flexibility and Default Rules

All LLC legal
statutes include a phrase similar to "unless otherwise provided for in
the operating agreement" and this allows for the flexibility the members
of an LLC have in deciding how their LLC will be governed. Some
statutes provide default rules for the governance of an LLC that are in
effect unless an operating agreement has been adopted.

Income Taxation

For
the purposes of the Internal Revenue Service and Federal income tax
purposes, LLCs are treated by default as a pass-through entity. If the
limited liability company has only one member or owner, it is
automatically considered a "disregarded entity" for tax purposes and the
owner is allowed to report the income from the LLC on his or her own
personal tax return as a Schedule C. If the LLC has multiple owners, it
is treated as a partnership and must file IRS form 1065. Partners will
then receive a K-1 for their share of losses or income so they can
report it on their tax return.

LLCs also have the option of
electing to be taxed as a corporation, simply by filing IRS Form 8832. Then, they will be treated the same way as a regular C Corporation or
they can elect to be treated as an S-Corporation. If it is treated as a
C-Corporation, the entity's income is taxed before any dividends or
distributions are given to the members and then taxation of the
dividends or distributions will be taxed as income for the members. Some
analysts have recommended the LLC taxed as an S-Corp as the best
possible small business structure, because it combines the flexibility
and simplicity of the LLC with the self-employment tax savings of the
S-Corp.

Advantages

Here are the attributes of a limited liability company that are most widely viewed as advantages:

•Check
the box taxation. LLCs have the option of being taxed as a sole
proprietor, partnership, S-Corporation or C-Corporation, which provides a
great deal of flexibility.

•Limited Liability. The owners of an LLC, who are known as members,
are generally protected from some or all liability related to the acts
and debts of the LLC, depending on state laws where the LLC formation
took place.

•Administrative paperwork and record keeping is significantly simplified compared to a corporation.

•Pass-through taxation is automatic, unless the LLC elects to be taxed as a C-Corporation.

•Profits are taxed at the member's personal level, rather than at
the LLC level by simply using the default tax classification given by
the IRS.

•In most states, LLCs are generally treated as being a totally separate entity from the LLCs owners.

•LLC's can generally be set up with only one person being involved.

•An LLC can assign its membership interests, and the economic
benefits of those interests can then be separated and assigned, which
provides the economic benefit of distributing the profit and losses of
the company, like in a partnership, without actually transferring the
title to the interest.

•Except in cases where the LLC has adopted a corporate taxation
structure, the income from the LLC will generally remain in the hands of
its members

•By adopting an operating agreement, members can generally establish
their own rules for governance and protective provisions for the
members.

Disadvantages

Here are the attributes of a limited liability company that are most widely viewed as disadvantages:

•Most
states do not have a statutory requirement for an LLC to have an
operating agreement, however, if you are a member of a multiple member
LLC, you may run into problems if you don't have an operating agreement,
since most states do not dictate the governance and protective
provision for the members of an LLC as they would with a regular
corporation.

•If a member decides to sell his interest in a limited liability
company, and if the ownership of the LLC is vested in multiple members,
it is not as straight forward as with a corporation since the LLC cannot
issue and sell stock certificates.

•Some investors are more comfortable with investing in corporations,
due to the possibility of an eventual IPO. This can make it harder to
raise financial capital.

•Franchise taxes are levied on LLCs in many states. This tax is
essentially a fee the LLC pays the state for the benefit of providing
limited liability. This tax can be based on revenue, profits, the number
of owners, the amount of capital employed in the state, or some
combination of these.

•LLCs are considered to be taxable entities in the District of
Columbia, which eliminates the benefits associated with pass-through
taxation.

•In some states, renewal or annual fees may be higher than corporations.

•Creditors have been known to require members of LLCs to personally
sign for and guarantee debts of the LLC, which obviously makes to owners
personally responsible for the debt.
Variations

•A Series LLC is a special and uncommon type of LLC. It allows a single LLC to segregate its assets into separate series.

•A Professional Limited Liability Company, also known as a PLLC,
P.L.L.C., or P.L., is a type of LLC that is specifically organized to
perform a professional service. This will usually involve professions
where the state requires a license to provide these same services, like a
doctor, chiropractor, lawyer, accountant, architect, or engineer. Some
states do not allow an LLC to participate in the practice of a licensed
professional.

Friday, November 11, 2016

Probate is the court process that determines whether your will is legally valid. The probate court is also where your estate is officially distributed to your creditors and the beneficiaries under your will. Depending on the value and complexity of your estate, the probate process can take several months .... or it may be eligible for a simplified process.

Thursday, November 10, 2016

The best living trust definition is a written legal document
which substitutes for a will as your primary estate planning vehicle.
When you have a trust you transfer your assets such as your home,
financial accounts and personal property to the trust. In addition you
change the beneficiary or contingent beneficiary of retirement accounts
and life insurance to the trust. These assets are then administered for
your benefit during your lifetime, and either continue to be held or
transferred to your beneficiaries when you die.

The creator, also
called the grantor, of the trust usually names him or herself as the
initial trustee in charge of managing the assets. This allows the
grantor to remain in control of the assets during his or her lifetime.
For all practical purposes under this living trust definition, nothing
changes in the way the grantor manages or controls the assets after they
are put in trust. The only difference is the named owner.

A
successor trustee is named in the document, usually a family member or
friend but sometimes an institution such as a bank or trust company.
This successor trustee then will manage the trust assets for benefit of
the grantor if the grantor becomes disabled and for the contingent
beneficiaries after the grantor dies.

This living trust definition
is for the revocable living trust. It is also sometimes referred to as
a revocable inter vivos or a grantor trust. It may be revoked or
amended at any time by the grantors as long as they are still competent.

Wednesday, November 9, 2016

A conservatorship is a court proceeding that grants one or more people the authority to make financial or health care decisions for another because of a mental or physical incapacity that renders a person unable to make informed and sound decisions.

A conservatorship can be over the person, the estate, or both. The person appointed by the court to make decisions is called the conservator, and the person about whom decisions will be made is called the conservatee.

Conservators are generally family members or a professional conservatorship company and in some cases, the Public Guardian's office may be appointed. Regardless of who the conservator is, their duty is to act solely in the best interests of the conservatee. To insure this, court evaluation, supervision and monitoring of the conservatorship is established.

Monday, November 7, 2016

Many people facing the prospect of divorce are surprised to learn
that pension benefits accrued during the course of a marriage are
considered marital property (or, in some states such as California,
community property) that is divided between the spouses upon divorce. A
pension plan falls under the category of retirement plans known as
defined benefit plans. These types of retirement plans generally provide
that upon retirement, the participant (employee) is entitled to a
monthly annuity that is payable over his or her lifetime.

Because
of certain provisions contained a Federal law known as the Employment
Retirement Security Act, a divorce judgment or matrimonial settlement
agreement, standing alone, is not a legally sufficient mechanism for
dividing a pension plan. It is essential that a further order, known as a
qualified domestic relations order (QDRO) be entered by the court and
approved by the pension plan administrator.

In situations where
the participant spouse is not yet retired, the QDRO form can utilize two
different methods for dividing pension benefits. These include the
"shared interest approach" and "separate interest approach."

If a
QDRO form uses the Shared Interest Approach, payments to the Alternate
Payee cannot begin until the Participant chooses to retire and begins to
receive a retirement allowance. Furthermore, payments to the Alternate
Payee must end upon the Participant's death unless the Alternate Payee
was designated in the QDRO as the surviving spouse of the Participant
for the purpose of electing a Qualified Joint and Survivor Annuity and
such election was elected by the Participant at the time of the
Participant's retirement.

If a QDRO form applies the Separate
Interest Approach, a "separate interest" is carved out for the Alternate
Payee and adjusted to his or her actuarial life expectancy. In
addition, the Alternate Payee controls the timing and manner of his or
her receipt of the benefit payments. The Alternate Payee can commence
receiving benefits at the Participant's earliest retirement date, rather
than wait for the Participant to begin to receive a retirement
allowance.

In most instances, it is highly beneficial for the
non-participant spouse that the QDRO form utilize a separate interest
approach. Sample QDRO forms are available for download. Upon completion
of a proposed QDRO form, the document must be submitted to the pension
plan administrator for approval, and, thereafter, to the divorce court
adjudicating the matter.

Sunday, November 6, 2016

A limited power of attorney is used for a very specific purpose
that can be clearly defined when a power of attorney is needed. The
agent or attorney-in-fact that is appointed does not have control over
the person's entire life, only the specified authority granted to them
in the form. In these cases, these types of attorneys are usually used
for financial transactions and the sales of real estate or personal
property such as motor vehicles. Again, this appointment has no control
or influence over any other aspect of the person's life. They can only
make decisions in a limited area and within limited parameters.

With
a limited attorney, it can be given to a person or organization for a
specific dealing. The person or organization has the authority to do
what is specified in the power of attorney until it expires or it is
revoked. The authority granted to the agent or attorney-in-fact can
lasts as long as needed or includes a specific date that it will expire.
Most anything a person can do themselves can also be done through an
agent or attorney-in-fact appointed in a limited power of attorney.

There
are a number of reasons that a limited attorney may be used. However,
these are not the only reasons and there are many more, as long as they
are not disallowed by state law. Some of the power or authority granted
to an agent or attorney-in-fact can include:

* Any and all banking transactions

* Safety deposit box entry

* US security transactions

* Debt collections

* Real estate sales

* Real estate management

* Real estate purchases

* Borrowing money

* Management of a business

* Government issues

* Financial decision making

* Gift giving and real estate planning

* Buying and selling vehicles

* Buying and selling of other property, such as jewelry, furniture or electronics

* The signing of paychecks

* Moving dealings

* Shipping and storing items and goods

* Custodial care of children

* Child medical care

A
limited power of attorney is used when a person can not take care of
the business themselves. For example, when the person will be out of the
country, or there are other commitments or health reasons that stop
them from being able to complete the task themselves.

Giving
someone power of attorney status is different from state to state,
however it usually entails filling out a form and signing off on the
document. The limited power of attorney form can also be revoked at any
time and for any reason as well. The person still has complete control
over their life and the status of the limited power of attorney
appointment.

Choosing an agent or attorney-in-fact for a limited
power of attorney should still be considered carefully to make sure that
they will carry out the person's wishes correctly and will act in the
best interest of the person.

Friday, November 4, 2016

The proper estate planning documents you need in case of
emergency! Nobody likes the thought of an emergency cutting a life
short. Especially for families, it's really hard to imagine what might
happen if there were some sort of tragic accident, an unforeseen
illness, or a catastrophic disaster that resulted in the casualty of a
vital family member. Without the necessary legal documents such as a
living will or power or attorney, the wellbeing of a family may be
threatened and your expressed or even written wishes may not necessarily
be honored.

If someone is involved in a serious accident, but is
injured to the point they are unable to communicate their wishes, a
healthcare power of attorney is given the legitimate right to make major
healthcare decisions on the patient's behalf. For example, if you do
not wish to be placed on life support for an extended period of time,
the only way to make this preference legal is taking the proper steps to
create lawfully acceptable paperwork and documentation.

When
someone dies without any legally authorized instruction for the
delegation of their belongings and investments, all property goes into a
very complex court proceeding where assets are given to the spouse,
next of kin, or separated between various related parties. In this
situation, a third party has full control over how these items and funds
are distributed, regardless if the deceased had verbally expressed
other wishes. A legalized will is absolutely necessary to ensure that
your belongings are properly taken care of after your passing.

Have these legal documents prepared today so that you ensure that your family is taken care of in the event of an emergency.

Prepared Will is a legally enforceable declaration of how a person wishes his or her property to be distributed after death.

Health Care Power of Attorney
is a legal form that allows an individual to empower another with
decisions regarding his or her healthcare and medical treatment.

Living Will Directive is
a written statement detailing a person's desires regarding their
medical treatment in circumstances in which they are no longer able to
express informed consent.

I know the fees associated with the
creation of these documents can become incredibly expensive if prepared
by a private lawyer. I also know that people are looking to the web for
do it yourself forms which can turn into a nightmare if not done
correctly. In many states these documents if not done by an attorney can
be thrown out and not accepted by a court.

There are
affordable solutions so that your documents are prepared by an attorney
and reviewed annually for you, your spouse, and covered family members.

When
it comes to protecting your family and your wishes, don't waste any
more time or put your loved ones at risk any longer.

Tuesday, November 1, 2016

Probate is the system in which the court's system's method of
processing the estates of a dead person. It is a legal document that
enables the administration of the estate of the deceased. It allows for
the resolving of claims and distribution of the deceased's will. Any
grievances surrounding a deceased person's estate are filed in the
probate court also known as the surrogate court. Once probated, the will
becomes a legal instrument that can be enforced by the executor.

Administration process

Administration
process of an estate on the other hand is the process by which the
deceased person's assets are collected, maintained and distributed. An
estate administrator sees to the proper administration of the will.

The Probate process

The
probate process begins after the death of a person. An interested
person files an application to administer the estate; a fiduciary is
then appointed who is to administer the estate and at times may be
required to pay a bond to safeguard and to insure the estate. Creditors
are notified and legal notices published. There may be filed a petition
to appoint a personal representative may need to be filed and letters of
administration obtained. All these processes must be done in accordance
with the limitation clause.

Property that avoids probate

Property
that passes to another person contractually upon the death of a person
does not enter probate for example a jointly owned property with rights
of survivorship. Property held in a revocable or irrevocable trust that
was created when the grantor's was still alive does not also enter
probate. In most of these cases the property is distributed privately
and without many issues thus no court action is required.

What happens in the probate and administrative process?

After
a probate case has been filed in court, an inventory is entered and the
deceased's property collected. The debts and taxes are paid first then
the remaining property distributed to the beneficiaries. The probate and
administrative process may be challenged at any time as a whole or part
of it. The issues that arise during such hearings include will contests
and paternity issues and these have to be solved before the matter is
decided.

The need for the appointment of an administrator arises
where the deceased left no will, some assets are not disposed of by the
will, in cases where there is a will however, the case goes to probate
directly. The estate administrators act like will executors but where
the will does not state how to distribute of property, they follow the
laid down laws.